For Aug. 26, here are your stock market futures, earnings reports, top stock market news, and stocks to watch...
Dow Jones Futures Today
Futures for the Dow Jones Industrial Average today (Wednesday) forecast a 450-point gain despite another highly volatile trading session on China's Shanghai Composite Index.
On Tuesday, the Dow Jones Industrial Average pared gains after a massive "Black Monday" rebound saw the market climb as many as 441.5 points. The Dow Jones Industrial Average and S&P 500 both slid into negative territory during the last 30 minutes of yesterday's trading session, one day after the Dow's worst three-day decline in its 133-year history. The Dow finished down more than 205 points on the day.
Early Tuesday morning, the Chinese central bank announced it had slashed interest rates and reduced the amount of money required for reserve banks to hold for the second time in just two months.
Top News in the Stock Market Today
- Stock Market Today: Investors will keep an eye on an update on domestic oil inventories from the U.S. Energy Information Administration (EIA), a monthly report on U.S. durable goods for July, and last month's update on nondefense capital goods.
- Oil Outlook: Domestic WTI oil prices were bouncing off near six-and-a-half year lows. WTI crude prices added 1.1% to reach $39.74 per barrel. Meanwhile, Brent oil prices added 0.3% to $43.56 per barrel. Here's how much of a rebound you can expect from Brent Crude oil prices after the "Black Monday" Crash...
- Earnings Reports: Companies reporting earnings include Abercrombie & Fitch Co. (NYSE: ANF), Workday Inc. (Nasdaq: WDAY), Williams-Sonoma Inc. (NYSE: WSM), Avago Technologies Ltd. (Nasdaq: AVGO), Guess? Inc. (NYSE: GES), Chico's FAS Inc. (NYSE: CHS), and Molycorp Inc. (NYSE: MCP).
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Pre-Market Movers in the Stock Market Today: SLB, CAM, RIG, OSK
- Pre-Market Movers No. 1, SLB: As Money Morning Global Energy Strategist Dr. Kent Moors predicted, merger and acquisition is going to be one of the best ways to make money right now in the energy sector. This morning, oilfield services giant Schlumberger Ltd. (NYSE: SLB) announced plans to purchase equipment products giant Cameron International Corp. (NYSE: CAM) for $12.7 billion. This is a 56.2% premium over yesterday's closing price for Cameron stock. Shares of Cameron were up more than 45% this morning, while SLB stock was down 1.6%. As Kent explains, the low-price environment has primed the oil sector for a wave of mergers. And this will create a new group of heavyweight companies that will lead the market into a "new energy age." To learn how to identify this new class of must-own energy stocks, read Kent's insight here.
- Pre-Market Movers No. 2, RIG: Shares of Transocean Ltd. (NYSE: RIG) fell nearly 9% this morning after the oilfield services company said its board of directors will meet in October to discuss the suspension of its dividend payments for December 2015 and March 2016. The news stunned shareholders given that its $0.15 dividend was approved in May.
- Pre-Market Movers No. 3, OSK: Shares of Oshkosh Corp. (NYSE: OSK) surged more than 9.5% after the company earned a $6.7 billion contract from the U.S. Defense Department to replace the Humvee from the military's vehicle rotation. The contract will see Oshkosh develop 17,000 light tactical vehicles for the U.S. military.
Stocks to Watch Today: POM, EXC, GOOG, GOOGL, GS, AMZN
- Stocks to Watch No. 1, POM: One of the biggest deals in the energy business in 2015 is likely off. Shares of Pepco Holdings Inc. (NYSE: POM) cratered more than 16% on news the D.C. Public Service Commission formally denied an application from energy giant Exelon Corp. (NYSE: EXC) to buy Pepco in a deal worth $6.4 billion. Shares of Exelon fell roughly 7% after the story broke.
- Stocks to Watch No. 2, GOOG, GOOGL: Investment firm Goldman Sachs Group Inc. (NYSE: GS) announced it has added Google Inc. (Nasdaq: GOOG, GOOGL) to its "conviction buy list." The bank says Google is entering a period when its profit margins are set to expand, paving the way for big gains for the stock. GOOG stock was up 4.8% this morning. Here's how you can cash in with Google and its new company Alphabet.
- Stocks to Watch No. 3, AMZN: Good news if you need a drink, and you need it fast. E-commerce giant Amazon.com Inc. (Nasdaq: AMZN) announced plans to expand its Prime Now delivery service to include one- to two-hour delivery of alcohol, including wine, beer, and spirits. The company is in direct competition with the new startup Drizly, which offers similar services. Meanwhile, investment firm Evercore upgraded Amazon stock from a "Hold" to a "Buy," sending the stock up nearly 4% this morning.
Today's U.S. Economic Calendar (all times EDT)
- MBA Mortgage Applications at 7 a.m.
- Durable Goods Orders at 8:30 a.m.
- PMI Services Flash at 9:45 a.m.
- EIA Petroleum Status Report at 10:30 a.m.
- 2-Year FRN Note Auction at 11:30 a.m.
- 5-Year Note Auction at 1 p.m.
What Investors Must Know This Week
- Protect Yourself from China's Crashing Stock Market
- Why the Sell-Off Happened, and How to Make Money on It
- The 4 Real Reasons Oil Prices Are Slipping - and How to Profit
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About the Author
Garrett Baldwin is a globally recognized research economist, financial writer, consultant, and political risk analyst with decades of trading experience and degrees in economics, cybersecurity, and business from Johns Hopkins, Purdue, Indiana University, and Northwestern.